Stocks rise as war risks fade

In his address to the nation, US President Trump downplayed the impact of Iran’s retaliatory missile strike on US bases in Iraq, effectively backing down from a conflict escalation. Equities bounced strongly off intra-day lows while gold and oil prices reversed early direction.

US30USD Daily Chart

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The US30 index closed in the black yesterday, recouping early losses of as much as 1.5%

The 55-day moving average, which has supported prices since October 10, has moved up to 27,937

There are no major US data releases scheduled for today, apart from the weekly jobless claims data. Speeches from Fed’s Clarida. Kashkari and Williams can be expected.

DE30EUR Daily Chart

The Germany30 index rose the most in a week yesterday following the strong rebound on Wall Street

The index survived another test of the 55-day moving average at 13,146, once again failing to close below it. That moving average has supported prices on a closing basis since October 8

Germany’s exports are seen falling 0.5% in November after a 1.2% increase the previous month. The trade surplus is seen narrowing to €20.0 billion from €20.6 billion.

WTICOUSD Daily Chart

Oil prices retreated sharply from nine-month highs after Middle East tensions calmed down, posting the biggest one-day loss since November 29 in the process

West Texas Intermediate (WTI) fell toward the 55-day moving average at $58.415, which has supported prices since December 3

Weekly crude oil stockpiles data from the Energy Information Administration showed a surprise increase in inventories in the week to January 3. Stockpiles rose by 1.16 million barrels after an 11.5 million barrel shortfall the previous week.

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